Theory Of Constraints When we change the view point of costs, we see different types of costs. And we see different type of problems through the index of money. There is Cost Analysis.
"Quality Cost" is the costs related with Quality Control . The costs to prevent quality problems, to pay for the failure of quality control, etc are quality costs.
Quality Cost is similar to Envitronmental Cost and CSR Cost because it collects the costs of non-profitable actions.
Standard Time is made by Industrial Engineering . When we have standard time, we can analyze the unevenness of productivity. And the plan of production is reasonable.
Standard Time is the time of the best.
We can estimate the cost using the difference from standard time.
Lige Cycle Costing (LCC) estimates the cost of product with the cost from External Diseconomics .
For example, when material cost is 10000 yen and the production is made with 70 percents of the material, Material Flow Cost Accounting (MFCA) says "Positive cost is 7000 yen and negative cost is 3000 yen.".
By the way, we often says "The products needs 10000 yen." So there is the difference.
The negative cost tells us the area to improve.
In actual MFCA costs of human resources, energy and indirect materials are also divided into positive and negative.
LCC and MFCA are not only the cost-down tool but also the environmental preservation. So these are called "Environmental Management Accounting". One of the Management Accounting .
LCC and MFCA, themselves, are not Environmental Assessment . When we use them for the environmental preservation, evaluation of CO2 and environmental damages etc is added to LCC and MFCA.
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